Navigating the estate planning process can feel daunting. It requires in-depth conversations with professionals and loved ones, which isn’t always easy. At the same time, it requires you to consider future care needs while navigating complex legal documents. However, thoughtfully considered estate planning is vital to reducing stress for you and your loved ones as your needs change.
What is estate planning?
Estate planning generally refers to where valuable assets will go after an individual’s passing. The process requires you to consider who will oversee the transfer, who assets will go to, also known as the beneficiaries, and whether any state laws need to be considered. If possible, estate planning should be completed before a significant health or care change.
While going through the estate planning process, many individuals will also appoint a representative to make health and financial decisions for them if they cannot do so themselves. People may consider their ideal care options, such as a senior living community. An estate planner can help financially plan for paying for care needs while living.
Without investing in estate planning, you and your loved ones become vulnerable to increased stress and challenging financial situations. Conversations and documents involved in estate planning ensure everyone knows your wishes and has what they need to follow through with them.
Who is involved in estate planning?
The estate planning process generally includes a professional estate planner. These financial experts understand the legal and economic aspects of long-term planning. They can also assist with planning long-term care needs like paying for home care or senior living. Some estate planners may also be able to assist with Medicaid planning. An estate planner from New Jersey will be best at helping you navigate state-specific laws and requirements.
While a professional estate planner will be necessary to execute financial plans, including a trusted loved one is essential. This could be a close family member or friend who can help you consider your options and be aware of your plans if you cannot communicate them. During these conversations, you may also discuss your wishes for health care needs, known as advanced directives.
Important Documents when Estate Planning
The process of estate planning results in a few key documents that will be important to bring with you upon a move to a senior living community. The primary documents include a will, trust documents, power of attorney, and advanced directives. Here’s a brief overview of what each of these documents entails:
Wills: A will outlines how assets will be distributed after an individual’s passing.
Trust: A trust is a complicated financial directive that allows another person to oversee money or an asset on your behalf. This often decreases tax implications.
Power of Attorney: A power of attorney appoints a specific person to make financial, and sometimes healthcare, decisions on your behalf if you cannot do so yourself.
Advanced Directives: Advanced directives outline your wishes for life-sustaining treatment, such as CPR.
A professional estate planner will review these documents to ensure they reflect your wishes and desires for aging and after death.
Reviewing your Plans
Life can bring many changes. New relationships, loss, and health concerns can impact your values as you age. Even changes in living arrangements, such as a move to a senior living community, could prompt adjustments. Because of the possibility of change, reviewing your estate planning documents every year is essential. Your professional estate planner will advise you if you should review documents more frequently.
Estate Planning and Senior Living Transitions
The team at a senior living community will want to know who your power of attorney is and have a copy of any advanced directives. This ensures the senior living community can follow your wishes and provide quality, personalized care as you age. While completing your estate planning is helpful before moving to a senior living community, it’s unnecessary.
No matter where you’re at in your estate planning process, it’s always important to consider your future care plans. If you think a senior living community may align with your future care and financial goals, visit Arbor Terrace Basking Ridge for a tour. A conversation with one of our trusted senior living advisors can help you uncover the value of senior living and how our flexible care needs can adapt to meet your needs as you age.
